Investors often overlook SEC filings, and it is the job of the 10Q Detective to dig through businesses’ 8-K and 10-Q SEC filings, looking for financial statement ‘soft spots,'(depreciation policies, warranty reserves, and restructuring charges, etc.)that may materially impact Quality of Earnings.

Saturday, January 10, 2009

Minkow Shows Wherein Homebuilder Lennar Wronged

In an interview on CNBC today, Stuart Miller, Chief Executive Officer of Lennar Corp (LEN-$9.15) responded to allegations the homebuilder used money from joint ventures to build up its balance sheet, saying it was "just not true." Barry Minkow, of the Fraud Discovery Institute, posted information on his website earlier in the day claiming—among other allegations—that Lennar "continues to provide vague and less than transparent responses to SEC inquiries about off-balance sheet, joint venture debt," and improved its cash reserves to $1.1 billion [year-end 2008] through less-than ethical means. Irrespective of the veracity of either Minkow’s assertions or Miller’s response, there are some disconcerting transparency issues—or lack thereof—in the company’s recent 10-Q filing… Read More….

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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About Me

Prior to founding the 10Q Detective, I held equity analyst positions with three brokerage firms and published the investment newsletter e-Growth Profit Letter - dedicated to uncovering companies with innovative, proprietary technologies in a range of industries. My work has been published in The Dick Davis Digest, The Bull & Bear Financial Report, BusinessWeek, CBS Interactive, Forbes, Kiplingers Personal Finance, MSN Money, TheStreet.com, 24/7 Wall Street, The Wall St. Journal, The International Herald Tribune, and Investors Business Daily.
The 10Q Detective is recommended as a 'Must-Read' money blog in Kiplingers (Oct. 2006 & May 2008), Washington Post (May 2009); a 'Best of Financial Blog' by BusinessWeek (Feb. 2007 & April 2008),a 'Smart Stop' by The Journal of Accountancy (March 2008); 'Top 25' by Time magazine, a 'Top 50 Money Blog' by CurrencyTrading.net (April 2008); and, a 2011 LexisNexis Business Law Blog Nominee.